BigBear.ai (NYSE:BBAI) Shares Down 1.3% - Should You Sell?

Key Points

• BigBear.ai's shares fell by 1.3% on Thursday, with a trading volume significantly below average, indicating decreased investor interest.
• Analysts have reduced their target price for BigBear.ai from $9.00 to $8.00, maintaining a "buy" rating, while the stock carries an average rating of "Moderate Buy" with a target price of $6.00.
• The company reported a revenue drop of 18.3% year-over-year, with earnings per share slightly beating estimates but showing persistent financial challenges, including a negative net margin of 269.28%.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report)'s share price dropped 1.3% on Thursday . The company traded as low as $4.84 and last traded at $4.84. Approximately 10,620,872 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 85,607,000 shares. The stock had previously closed at $4.90.

Analyst Ratings Changes

Separately, HC Wainwright reduced their target price on BigBear.ai from $9.00 to $8.00 and set a "buy" rating on the stock in a report on Tuesday, August 12th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $6.00.

BigBear.ai Stock Performance

The company has a quick ratio of 1.91, a current ratio of 1.91 and a debt-to-equity ratio of 0.42. The company has a 50 day moving average of $6.54 and a 200 day moving average of $4.75. The firm has a market cap of $1.82 billion, a price-to-earnings ratio of -3.41 and a beta of 3.40.

BigBear.ai (NYSE:BBAI - Get Free Report) last released its quarterly earnings results on Monday, August 11th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.07) by $0.01. BigBear.ai had a negative return on equity of 48.11% and a negative net margin of 269.28%.The business had revenue of $32.47 million for the quarter, compared to analysts' expectations of $41.18 million. During the same quarter in the previous year, the firm posted ($0.06) earnings per share. The company's revenue was down 18.3% compared to the same quarter last year. BigBear.ai has set its FY 2025 guidance at EPS. As a group, equities research analysts expect that BigBear.ai Holdings, Inc. will post -0.28 EPS for the current fiscal year.

Insider Transactions at BigBear.ai

In other BigBear.ai news, CFO Sean Raymond Ricker sold 11,978 shares of the company's stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $5.35, for a total transaction of $64,082.30. Following the sale, the chief financial officer owned 296,345 shares in the company, valued at $1,585,445.75. This represents a 3.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 1.10% of the stock is owned by insiders.

Hedge Funds Weigh In On BigBear.ai

Several institutional investors have recently made changes to their positions in BBAI. Vanguard Group Inc. grew its holdings in BigBear.ai by 9.2% in the 1st quarter. Vanguard Group Inc. now owns 6,325,571 shares of the company's stock worth $18,091,000 after buying an additional 534,963 shares in the last quarter. Jump Financial LLC bought a new position in BigBear.ai in the 2nd quarter worth approximately $37,407,000. Geode Capital Management LLC grew its holdings in BigBear.ai by 125.2% in the 2nd quarter. Geode Capital Management LLC now owns 5,074,311 shares of the company's stock worth $34,456,000 after buying an additional 2,820,698 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in BigBear.ai by 3,252.7% in the 2nd quarter. JPMorgan Chase & Co. now owns 2,398,419 shares of the company's stock worth $16,285,000 after buying an additional 2,326,883 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in BigBear.ai by 569.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,340,713 shares of the company's stock worth $6,694,000 after buying an additional 1,990,822 shares in the last quarter. 7.55% of the stock is owned by institutional investors.

About BigBear.ai

BigBear.ai Holdings, Inc provides artificial intelligence-powered decision intelligence solutions. It offers national security, supply chain management, and digital identity and biometrics solutions. The company also provides data ingestion, data enrichment, data processing, artificial intelligence, machine learning, predictive analytics, and predictive visualization solutions and services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.